Millions sleepwalking into old age crisis because of 'fanfare' over care cap, Age UK

Millions of people approaching retirement could be sleepwalking into a crisis because the 'fanfare' over the Coalition’s planned cap on the cost of care has lulled them into a false sense of security, a report warnsPhoto: ALAMY

Millions of people approaching retirement could be sleepwalking into a crisis because the “fanfare” over the Coalition’s planned cap on the cost of care has lulled them into a false sense of security, a report warns.

A lack of public awareness of the fine print of the planned overhaul of the care system is threatening to mislead many people into believing that the problem that they no longer have to plan for their old age, the charity Age UK fears.

The warning comes in a report on how the Government is going about preparing the ground for the shake-up due to take place in less than three years.

It warns that a once-in a generation opportunity to transform the care system opened up by the landmark report by the economist Andrew Dilnot could be “wasted” because of a shortage of funds and a lack of openness.

The study, co-authored by Caroline Abrahams, charity director of Age UK also urges the Government to reconsider plans to limit a scheme designed to prevent anyone having to sell their property while they are still alive to pay for care.

The Coalition suffered a rebellion in the Lords in October after Peers were warned of the implications of a little-publicised clause in the Government’s care Bill which imposed a means test on the scheme intended to enable people to defer the cost of care until their death.

The report warns that unless it is made available to every older person irrespective of whether they have savings, Government promises that no one should have to sell their home would be “cold comfort” to them.

New polling carried out for Age UK found that the quality of care in old age is the biggest fear people in their 50s and early 60s have about growing old, ahead of concerns such as NHS treatment and pensions.

Overall seven out of 10 people approaching retirement said they did not feel confident that they would be treated with dignity and respect.

Under the current system in England anyone with assets, including their home, worth more than £23,500 gets no financial support if they have to go into a care home.

From 2016, that threshold will be raised dramatically and there will be a notional £72,000 cap on the amount that anyone should have to spend on care in their own lives.

But only those deemed frail enough to qualify for care under a new national test will be eligible.

The report that the public have been left largely ignorant of the limitations of the new system such as the fact that some parts of people’s care home bills will not be counted towards the cap.

Crucially, any money people spend on their own care before they are judged sufficiently frail will also not count.

“It is clear that Government needs to take urgent steps to ensure the realities of the new system are clearly communicated and understood,” the report warns.

“Historically there has been very low awareness of social care and there is a big risk that the fanfare surrounding the introduction of the new system raises awareness, only to leave many with the impression there is now no need to plan ahead – in fact the reverse is true.

“This means Government needs to be upfront about what is and is not included in the proposed funding reforms.

“Older people and their families will need to understand that the lifetime cap only applies to care needs, not to living costs in a care home, and that it only comes into effect once they have been assessed as meeting the eligibility threshold, not necessarily at the point they develop a care need.”

It adds: “The Government’s pledge that no one will have to sell their home within their lifetime to pay for care will be cold comfort if the reality is that the scheme will only step in as a last resort once someone has so run down their savings that they have reached a position where they would otherwise have no alternative but to sell up during their lifetime to fund their care.”

Caroline Abrahams, added: “The Government deserves credit for bringing forward long overdue reforms to the social care system that could make a real difference if properly implemented, but we are worried that the social care ‘ coat’ being designed for 2016 is being cut to the inadequate ‘cloth’ that the Treasury is allocating.

“A great new system on paper is pointless unless there is sufficient funding in place.”